The new regulator of consumer financial products would be housedin the Federal Reserve and would have the ability to write rules,but most of enforcement would be done by the safety and soundnessregulator, according to media reports of a bill to be unveiledtoday by Senate Banking Committee Chairman Christopher Dodd(D-Conn.).

The bill would give regulators, such as the NCUA, the power toenforce regulations though the consumer regulator could participatein an examination of a financial institution if it were concernedabout a financial institution's practices.

The bill would also create a council of regulators that could bya two-thirds vote overrule a proposed regulation by the consumerregulator.

Dodd has said he hopes the Banking Committee will mark up themeasure next week and the full Senate could consider it in April.Any bill passed by the Senate would have to be reconciled with abill passed by the House last December, which would create anindependent consumer agency.

It's not clear what the prospect's are for Dodd's bill. He isintroducing it on his own, after negotiations with Republicans weresuspended, though the bill includes provisions that had bi-partisansupport, it's not clear whether that means the final version willenjoy that kind of support.